The following graph shows the short-run aggregate supply curve (AS), the aggregate demand curve (AD), and the long-run aggregate supply curve (LRAS) for a hypothetical economy. Initially, the expected price level is equal to the actual price level, and the economy is in long-run equilibrium a1 its natural level of output, $110 billion. Suppose a bout of severe weather drives up agricultural costs, increases the costs of transporting goods and services, and increases the costs of producing goods and services in this economy. Use the graph to heip you answer the questions about the short-run and fang-run effects of the increase in production costs that foiiow. (Note: You wiii not be graded on any adjustments made to the graph.) Hint: For simplicity, ignore any possible impact of the severe weather on the natural level of output. \fThe short-run economic outcome resulting from the increase in production costs is known as Now suppose that the government immediately pursues an accommodationolicy by incre monetary neutrality thases in response to the short-run economic impact of the severe weather. deflation spendflation In the long run, when the government pursues accommodationicy, the output in the econ billion and the price level will be stagflationNow suppose that the government immediately pursues an accommodationicy by increasing government purchases in response to the short-run economic impact of the severe weather. In the long run, when the government pursues accommodation, the output in the economy will be $ billion and the price level will be